Vault
What is Vault? Vault is a protocol built by Vestige that allows the creation of time-locked escrow accounts on the Algorand blockchain. The main purpose of the protocol is to allow project managers to set up these vaults, that are verifiable on-chain, as evidence that a percentage of their tokens or liquidity is being held on an escrow account and thus:
  • Can not be “dumped” - Meaning market-sold without notice on unsuspecting users or the liquidity,
OR
  • Can not be “rugged” - Meaning removed without notice. This brings an extra layer of security, trust and transparency into the Algorand DeFi space, since all this information is verifiable on chain and can be viewed by anyone.
The Vault can also work as a token vesting mechanism, by which teams can give core-contributors agreed upon tokens to be released over a period of time and quantity to avoid potential price crashes, and panic from these.

How it Works

The way Vault works is through two smart contracts working in conjunction with each other. One we internally refer to as the “Admin” contract and the other as the “Vault” contract.
  • The Admin contract is in charge of setting up the fee structure as well as keeping track of all the launched contracts in an easily queryable format, so that any user can verify what vaults are live.
  • The Vault contract is in charge of executing the logic of the smart contract, that is keeping the funds on the escrow account and only releasing them when certain conditions are met.
The contract itself has three main stages:

Creation Stage

In this stage the user sets up the vault they want to deploy. The user has a choice of four different types of vaults:
  • Time Capsule: The vault will release all its funds once the specified time has passed. Fixed Percentage: This vault will release a fixed percentage amount of the tokens held over time.
  • Fixed Percentage: This vault will release a fixed percentage amount of the tokens held over time.
  • Half-Life: The vault will release half of the tokens held every time-step, the number of time-steps are set at the start by the vault deployer, with the final time-step releasing the same amount of tokens as the second-to-final.
  • Burn: The vault will never release any tokens resulting in the tokens no longer being useable.

Waiting Stage

In this stage the vault deployer will have to wait a minimum amount of time to reclaim his/her tokens back.

Claiming Stage

In this stage the vault returns all the tokens it has left to the deployer, the vault also accounts for any tokens that may have been accidentally airdropped into the contract.
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How it Works
Creation Stage
Waiting Stage
Claiming Stage